EUR/USD: news from the battlefield

EUR/USD opened the week with a gap lower and keeps consolidating in the sideways $1.3120/3070 range. Euro tested the levels below the $1.3100 mark (50% Fibonacci from the May-June rally), but retraced higher. The upside is contained by the descending June 19-24 trend line ($1.3120).

According to analysts at Commerzbank, the key support now lies at $1.3080/70 (daily MAs). They would allow for a rebound from here, but suspect that this will struggle to clear $1.3250.Decline below $1.3070 would trigger losses to $1.2900 and then to $1.2740.